David T. Gibbons, Perrigo chairman and CEO, said the impressive result was thanks to stronger than anticipated new product sales and the early onset of flu this year, which boosted sales of cough and cold products.
The quarter's results also included a one-time income tax benefit of $13.1 million, or $0.18 per share, resulting from the a Federal tax examination of tax years 1998, 1999 and 2000. This brought profits up to $38.2 million, or $0.53 per share, compared with $16.8 million, or $0.24 per share, a year ago.
"Perrigo continues to make good progress in improving operationalefficiencies. These same strategies were key contributors to the increase in year-to-date operating cash flow to $60 million, a 58 per cent increase compared with $38 million last year," said Gibbons.
Net sales for the six months rose by 3 per cent and income for the first half of the year came to $54.7 million, or $0.76 per share, compared with $35.6 million, or $0.50 per share, last year. Excluding the tax benefit of $13.1 million, or $0.18 per share, in the current year and a favorable lawsuit settlement of $2 million after-tax, or $0.03 per share, last year, net income was $41.6 million, or $0.58 per share, compared with $33.6 million, or $0.47 per share, a year ago.
The company also lifted its earnings forecast to $0.80 to $0.83 per share for 2004, before the one-time income tax benefit of $0.18 per share. Including the tax benefit, earnings are expected to range from $0.98 to $1.01 per share.
Perrigo recently bought Peter Black Pharmaceuticals, the UK's largest store brand supplement makers, for $13.4 million in cash and says it is now on its way to becoming a leading OTC pharmaceutical and nutritional products supplier in the British market.